Centre developing policy for low grade iron ore beneficiation: Steel Secretary

The central government is working on a policy on the beneficiation of low grade iron, a move set to boost the commodity's usage in the manufacturing of steel. The steel ministry is working on the policy along with the ministries of mines and environment, said Steel Secretary Nagendra Nath Sinha. 

The policy may be cleared over the next three months, he said. 

"There may be some concessions on the royalty (on the production of fines in the policy)," Sinha said without elaborating.

While lump ore or high-grade iron ore contains 65.53 per cent Fe (iron), fines are inferior grade ore with 64 per cent and less Fe content.

The use of iron ore with less iron content needs beneficiation which adds to the cost of steel production.

Earlier, Union Steel Minister Jyotiraditya Scindia had asked the domestic steel industry to adopt low carbon emitting steel-making processes, while cautioning that key raw materials coking coal and iron ore may not be a viable option in the future based on environmental, social, and governance (ESG) parameters.